US employers added 172,000 jobs in May, far exceeding expectations, as bars and restaurants raced to hire staff before the World Cup kicks off next week. The Bureau of Labor Statistics said leisure and hospitality businesses created 70,000 of those roles – a sharp jump from the average monthly increase of 14,000 over the previous year – with food and drink firms alone accounting for 48,000. Local government and health care also drove the gains, while the financial sector shed jobs and the unemployment rate held steady at 4.3%.
The hiring spree came as economists had forecast a far more modest 105,000 increase. The March and April figures were also revised up by a combined 93,000, underlining the resilience of the labour market even as businesses grapple with rising costs linked to the US-Israel war with Iran.
“US added 172,000 jobs in May, beating forecasts, as hospitality firms hired ahead of the World Cup.”
Rehan Alam, who owns The Red Lion pub and restaurant in downtown New York City, has hired seven extra bartenders to handle the expected surge in custom when the tournament – jointly hosted by the US, Mexico and Canada – begins. He told the BBC his business was overwhelmed when the World Cup was held in Qatar four years ago, and expects an even bigger boost this time because the final rounds are being played in nearby New Jersey. “Four years ago, when we had the World Cup, we didn’t expect it to get that crazy, and it did,” he said. “It brought a lot of attention to what we’ve always been trying to do with the soccer.”
Alam has installed seven new televisions, paid sound engineers to prepare the venue and “beefed up the staffing quite a bit”. He said the extra business was “definitely needed” as “our costs have skyrocketed” – pointing to direct energy costs and other charges being passed through in bills. “A boost like this is definitely going to give us that uplift of spirits,” he added.
Yet concerns are mounting that fans may be priced out of the tournament itself. Hotels have reported slow bookings, and US President Donald Trump said he “wouldn’t pay it either” when asked about a $1,000 (£736) ticket to watch his country play Paraguay in June. Fifa is facing allegations of “artificially inflating prices” and “misleading fans”, with the attorneys general of New York and New Jersey launching an investigation into the governing body’s practices. Fifa declined to comment.